Thankfully we dodged a bullet last week as Hurricane Matthew stayed well off shore as he passed by Jupiter. The preparation we witnessed was amazing and all here in the Northern Palm Beaches were very lucky. Hurricane season isn’t over but for now it is quiet out there in the tropics. What isn’t quiet is the political environment and no matter what side of the coin you are on, putting the wraps on the most bizarre campaign of all time will be a blessing. Future ramifications have never been bigger but hopefully we can figure out a way to move forward with less hatred and an eye for what is best for America, her citizens and our role in this world.
All of these macro events play a role on the real estate market here in the Jupiter area. Interest rates over the past two weeks have moved higher off all time lows for 30 year fixed loans by 14 basis points. Still a wonderful time to borrow money. We just forwarded a pre-approval for an offer we submitted this morning and our clients interest rate on a 30 year jumbo loan sat at 3.35%. Very nice.
Seasonally it is a time that the real estate market in the Jupiter area tends to catch its breath before the season kicks in. We expect fewer homes to be put under contract, more homes placed on the market for sale and median prices to be pulling back. So far the fall season is behaving just like the textbook says it should. Pending home sales continue to pull back, inventory levels are starting to climb and median prices for single family homes and condominiums are both retreating. Still a bit early to say how far single family prices are falling after a big move to the upside since July but over the first half of October they are definitely retreating for the first time in 4 months. After the big moves to the upside over the past three months a little pull back is healthy.
Inventory levels in the Jupiter area are up over the past month by about 4.4% but the increase has slowed over the past two weeks. Compared to year ago numbers there are far more homes on the market with inventory levels right now about 17% above 2015 numbers. We are closely watching pending home sales as they have dropped for the 4th time in 5 months and over the past month are down by 12% to the lowest levels we have seen since January.
Buyers are buying less even though there is more selection and interest rates remain very favorable. For now the election blues are putting a damper on the market and sellers are starting to feel the pain. Just in Jupiter, we have seen over 6% of sellers lower their list price over the past 10 days. The best marketed homes, in good condition and properly priced are still getting solid activity but sellers priced above the market are learning buyers are not going to be beating down their doors.
The next two months still look to be favoring buyers but the season ahead looks strong if we can just get this election behind us. Please remember to interview at least 3 brokers before doing anything real estate and find the one you trust with what is a large financial decision no matter where you. Mistakes in real estate can be very expensive so if Paradise Sharks can ever be of help please feel free to contact us anytime at 561.308.0175 or firstname.lastname@example.org.